Statistics on Capital for Entrepreneurs: VC and Angel Funding By Race, Age and Gender

Jun 8, 2017

The Entrepreneurs Backed by Venture Capital Funding

Venture capital funding in the tech industry has come to be seen as they key to success. Though, others prefer bootstrapping when starting their business. So who are these venture capital backed business founders?

A study conducted by CB insights has revealed a lot of details about VC backed companies across the country. The focus of the study was on the three largest players in tech startup; New York, California and Massachusetts.

Key Statistics

40% of funded companies have two founding members, and they raise 19% more money on average than companies with one or three founders. A common scenario is one founder focuses on the technical and product side of the business, while the other handles more of the business and marketing. A two founder company has the advantage of a greater depth of knowledge, while still keeping decision making simple compared to larger teams.

Founding teams based in California, raise more money than the other two states. On average 67% more than teams in Massachusetts and 59% more than Nee York based teams.

On average, all Asian teams raise:
• 74% more than all white teams
• 82% more than mixed teams
• 207% more than all black teams

Founders According to Race and Gender

Most founders are white males, but on average Asians receive more funding. Massachusetts has a higher percentage of women founders, compared to New York and California.

After being physically and mentally disabled by a brain tumor, Brandon overcame the odds to regain his health to help his pregnant wife in her fight against stage 3 breast cancer. A couple of years later he launched his blog. Today over 1 million business owners read his blog every month. Read Brandon's inspirational comeback story here.